Fultz Company has accumulated the following budget data for the year 2020.

1.		Sales: 31,220 units, unit selling price $86.
2.		Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $13 per hour, and manufacturing overhead $8 per direct labor hour.
3.		Inventories (raw materials only): beginning, 10,120 pounds; ending, 15,390 pounds.
4.		Selling and administrative expenses: $170,000; interest expense: $30,000.
5.		Income taxes: 30% of income before income taxes.

Part 1

Prepare a schedule showing the computation of cost of goods sold for 2020.

FULTZ COMPANY Computation of Cost of Goods Sold For the Year Ending December 31, 2020For the Quarter Ending December 31, 2020December 31, 2020
Cost of one unit of finished goods:
Direct materials		$
Direct labor
Manufacturing overhead
Total		$
Cost of Goods Sold		$

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Part 2

Prepare a budgeted multiple-step income statement for 2020.

FULTZ COMPANY Budgeted Income Statement For the Year Ending December 31, 2020For the Quarter Ending December 31, 2020December 31, 2020
Ending InventoryNet Income / (Loss)Income Tax ExpenseIncome from OperationsTotal Operating ExpensesIncome before Income TaxesPurchasesBeginning InventorySalesOperating ExpensesGross ProfitSelling and Administrative ExpensesCost of Goods Sold		$
SalesNet Income / (Loss)Cost of Goods SoldBeginning InventoryTotal Operating ExpensesIncome Tax ExpenseIncome before Income TaxesSelling and Administrative ExpensesIncome from OperationsOperating ExpensesGross ProfitEnding InventoryPurchases
Gross ProfitIncome Tax ExpenseEnding InventoryIncome from OperationsNet Income / (Loss)Selling and Administrative ExpensesCost of Goods SoldBeginning InventoryPurchasesSalesTotal Operating ExpensesIncome before Income TaxesOperating Expenses
Total Operating ExpensesIncome Tax ExpenseEnding InventorySelling and Administrative ExpensesNet Income / (Loss)Cost of Goods SoldBeginning InventoryGross ProfitIncome before Income TaxesSalesPurchasesOperating ExpensesIncome from Operations
PurchasesTotal Operating ExpensesEnding InventoryIncome before Income TaxesSalesIncome from OperationsSelling and Administrative ExpensesNet Income / (Loss)Operating ExpensesCost of Goods SoldIncome Tax ExpenseGross ProfitBeginning Inventory
Income before Income TaxesPurchasesIncome Tax ExpenseNet Income / (Loss)Income from OperationsBeginning InventoryCost of Goods SoldTotal Operating ExpensesSelling and Administrative ExpensesEnding InventorySalesGross ProfitInterest Expense
SalesTotal Operating ExpensesOperating ExpensesIncome before Income TaxesPurchasesGross ProfitNet Income / (Loss)Selling and Administrative ExpensesEnding InventoryBeginning InventoryIncome Tax ExpenseIncome from OperationsCost of Goods Sold
Cost of Goods SoldNet Income / (Loss)Income Tax ExpensePurchasesIncome before Income TaxesSalesIncome from OperationsOperating ExpensesBeginning InventoryTotal Operating ExpensesEnding InventoryGross ProfitSelling and Administrative Expenses
Income from OperationsOperating ExpensesPurchasesIncome before Income TaxesSalesEnding InventoryCost of Goods SoldNet Income / (Loss)Gross ProfitTotal Operating ExpensesSelling and Administrative ExpensesIncome Tax ExpenseBeginning Inventory		$